12:47 PM EST, 01/22/2025 (MT Newswires) -- Travelers Companies ( TRV ) reported stronger-than-expected fourth-quarter earnings on Wednesday amid an increase in premiums and net investment income even as hurricanes pushed catastrophe losses higher.

Core earnings per share advanced to $9.15 for the three months ended Dec. 31 from $7.01 the year earlier, topping the $6.63 average analyst estimate on FactSet. The property and casualty insurer's shares rose 4% in midday trade.

Net written premiums advanced to $10.74 billion in the fourth quarter from $9.99 billion the year earlier, but missed the Street's $10.84 billion view. Total revenue was up 10% to $12.01 billion, just ahead of the $11.9 billion consensus. After-tax net investment income increased 22% to $785 million, Chief Financial Officer Dan Frey said on a conference call, according to a FactSet transcript.

Catastrophe losses, net of reinsurance, rose to $175 million from $125 million due to Hurricane Milton and an increase in estimated losses from Hurricane Helene, which was a third-quarter event, the company said.

By segment, net written premiums climbed 8% to $5.43 billion within Travelers' business insurance division, and by 7% in both personal insurance and bond and specialty insurance.

Full-year core income was up 64% to more than $5 billion, while core return on equity jumped to 17.2% from 11.5%. The 2024 performance was "driven by strong fundamentals, growth and earned premiums, excellent underwriting profitability and a higher level of net investment income," Chief Executive Alan Schnitzer told analysts.

"That combination makes for a powerful earnings engine," he said. "And that momentum is at our backs as we enter 2025."

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